What Happens After Bitcoin Fails to Break $100,000?

Recent price fluctuations in #Bitcoin# highlight its difficulties in breaking through the $100,000 threshold. Last week, the cryptocurrency briefly surged to $99,800 during Black Friday but soon fell back to $96,000. This failure to break through has left market sentiment increasingly tense, leading many analysts to question Bitcoin's upward potential and suggesting that a larger correction may be on the horizon.

Recent on-chain data reveals that a portion of Bitcoin seized by the U.S. government in the "Silk Road" case was transferred to Coinbase Prime in the early hours of today (the 3rd), amounting to 19,800 coins valued at nearly $2 billion. The emergence of this news has sparked considerable speculation in the market, with investors fearing that these coins may be sold off, exacerbating the oversupply situation.

According to blockchain analytics firm Arkham Intelligence, the address marked as "U.S. Government: Silk Road DOJ Seized Funds" transferred the 19,800 Bitcoin to a new wallet early this morning before depositing them into Coinbase Prime, further increasing market unease.

Historically, Bitcoin tends to experience significant volatility when nearing major psychological thresholds. For instance, in 2021, Bitcoin encountered resistance around $64,000, leading to a substantial correction that eventually saw its price drop below $30,000. This pattern could potentially repeat itself given the current circumstances, especially following the failure to break through $100,000, which may trigger panic selling in the market.

Additionally, trading volumes have notably decreased, indicating a drop in investor activity. Bitcoin's trading volume has diminished by about 30% in recent weeks, likely due to investor concerns about future trends and overall market uncertainty. When trading volume declines, price stability is often compromised, further heightening the risk of price corrections.

Overall, with Bitcoin's failure to break through the $100,000 barrier and the news of the U.S. government's Bitcoin transfer, market sentiment appears increasingly bleak. In light of potential correction risks, investors are approaching the future market trajectory with caution, as panic selling could lead to a deeper price adjustment for Bitcoin.

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